This report provides an overview of a comprehensive study of the Australian higher education system undertaken by Dr John Howard, Managing Director of Howard Partners, and Visiting Professor at the University of Technology Sydney.

The report points to:

• Universities' having to compromise their education mission by an overarching imperative to generate revenue to fund research and campus expansion
• The growing complexity of universities finance and need to manage to financial performance metrics  
• The movement of the unified system from a culture of consensus and collaboration to one of command and control
• The next phase of the higher education industry growth life cycle characterised by rationalisation, transformation and innovation

The themes draw together in a call for a more diversified system that addresses differing market (demand) segments and sets out some challenges.